The US Dollar isn’t fiat
Everybody on the planet seems to be telling me that the us dollar is a fiat currency, but it obviously is not. Money is created by banks through loans. If a 300k mortgage loan is made, then 300k dollars are created which are backed by a tangible private sector asset, a house, and also an income and promise to repay. The US dollar is backed by the private sector. Of course it is also backed by the federal government laws, huge asset base, and power of taxation. This makes the us dollar the most thoroughly well backed currency in human history, it’s not just a piece of paper. To me, fiat means not backed, i.e. bitcoin, which is the stupidest asset bubble of all time.
Considering how many brilliant people have stated the usd dollar is a fiat currency, and considering there is only one hillbilly from colorado(me) saying that it ain’t fiat, I am assuming I am missing something. Thoughts?
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